Retail sales tax

Though the country expected a drop this year, total sales from January - November were up 6.2 percent over the same period last year, bringing in 872.57 trillion (51.9 billion US$).However, the growth rate of 6.2 percent, is almost half of the 11 percent growth recorded in last year’s first 11 months, said Tran Thi Hang, head of GSO’s Trade and Pricing Department. Poor food hygiene and safety has also contributed to the reduction of the purchase of food, which accounts for a big segment of national retail revenue.Ms Hang also attributed the drop in purchases to consumers holding back on buying imported electrical and refrigeration products until early 2009, when import taxes will be cut under WTO agreements, and prices will fall.Nguyen Minh Thu, marketing manager of the Thien Nam Hoa Electrical and Household Products Centre in Ho Chi Minh City, said that the present consumption of electrical and household products has reached only 90 percent of last year’s figure … [Read more...] about November sees two-percent growth in retail sales

However, the rise is lower than the 7-10 percent recorded in the same period in recent years. Among the total, trade made up 880.7 trillion VND (41.93 billion USD),followed by the hotel-restaurant sector, which is worth 132.8 trillionVND(6.32 billion USD). GSO expert Vu Manh Ha attributedthe decline to slow economic growth, high interest rates and stagnancyin production, which have affected spending power. Haforecast that the sale of goods and services will improve in the secondhalf of the year thanks to the Government's stimulus programmes. Toboost production and consumption, the Government recently cut interestrates and approved a 29 trillion VND (1.4 billion USD) tax break packageto support businesses. Though Vietnam is no longer amongthe 30 most attractive retail markets in the world as listed by A TKearney, experts said the domestic market still has great potential inthe eyes of retailers. Nguyen Thi Anh Hoa, owner of theCitiMart chain, said the report by A T Kearney will in no … [Read more...] about Retail sales leap 6.5 percent in first half

Illustrative image (Source: VNA) Hanoi(VNA) – The country’s total retail sales revenue reached nearly 2.24quadrillion VND (98.6 billion USD) in the first seven months of this year,representing a year-on-year increase of 10 percent.In July alone, the figureexceeded 327.6 trillion VND (11.4 billion USD), up 1.19 percent compared withthe previous month. Revenue of the groupof food and foodstuff, accommodation and catering services saw noted increasesfrom 10.7 percent to 11.6 percent while that of cultural and educationalservices experienced the lowest rise of 4.84 percent, reflecting that thedemand for such services remained stagnant due to their online prevalence.The remaining groupsexpanded from 7.75 percent to 9.6 percent. Disregarding price hikes, the totalretail sales and services revenue stood at 8.7 percent, higher than the raterecorded in the first half of this year.Experts forecastthat in August and the remaining months of this year, the goods market willcontinue … [Read more...] about Retail sales revenue increases 10 percent in seven months

Retail sales revenues nationwideexperienced an average monthly increase of 2 percent in the firstsix-months of the year despite decreases in the industrial productionvalue and exports. The information was released by domestic market controllers at a meeting in Hanoi on June 30. The increase proved the effectiveness of the synchronous measures takenby the Government in anticipation of the economic recession, they said.The experts’ findings show that Vietnam ’s retail sales revenues were547.495 billion VND (30.4 million USD) in the first half of the year, ayear-on-year increase of 20 percent. However, if price increases arefactored in, the country posted a year-on-year rise of only 8.8 percentin retail sales. The first two months saw no change in retail sales as consumers as wellas enterprises cut back on expenses. However, sales started to reboundin March thanks to the Government’s stimulus packages, as well aspromotions and sales spearheaded by enterprises … [Read more...] about Domestic retail sales bounce back

Illustration photo Under its commitments to the World Trade Organization (WTO), since January, 2015, Viet Nam permitted the establishment of wholly-foreign owned companies.In addition, the official operation of the ASEAN Economic Community since 2016 is expected to permit free circulation of resources, goods, capital, and human resources. The Trans-Pacific Partnership Agreement would be sealed in 2016 with over 10,000 types of products among 12 member economies enjoying free tax.The aforesaid conditions would make Vietnamese retail sale market competitive and thrive.So far, in Viet Nam, modern retail sale channels occupied 25% of the market shares, lower than its peers such as the Philippines (33%); Thailand (34%); China (51%); Malaysia (60%); and Singapore (90%). By 2020, Viet Nam would raise the figure to 45%. Thus, Viet Nam offers a promising cake for investors.Foreign retailers made up over 40% of around 800 … [Read more...] about M&A retail sale deals on upward trend

Under the current regulations, the special consumption tax on imported goods is calculated keeping in mind their cost, insurance, and freight (CIF) value plus current import tariff.However, the ministry said the import tax on automobiles and air-conditioners would be lowered to zero under the country's commitment to international integration. The current special consumption tax on imported goods would not ensure fairness between local and imported items. Therefore, it proposed to revise the regulations by adding domestic sale fee on importers. The domestic sale fee should be calculated on the basis of fees paid for services such as packing, managing, advertising, displaying, transporting, and the warranty plus interest of tax payers.However, the new calculation faced strong opposition from several businesses as the special consumption tax on the imported goods could be increased by 15% from current levels.The Vietnam Beer, Alcohol and Beverage Association said this upwardly revision in … [Read more...] about Ministry proposes increase to special consumption tax

Korea's leading retail corporation, Lotte Mart has just opened its fourth trade centre in HCM City and by 2020, Lotte Mart will have 60 outlets throughout the country.— Photo dddn HCM CITY (VNS) — Vietnamese retailers risk losing the domestic market, which will soon be dominated by foreign ones, the Lao dong (The Labour) newspaper reported on Wednesday. Currently, Viet Nam has about 700 supermarkets and trade centres, 40 per cent of which are owned by foreign retailers. Officials at the Ministry of Industry and Trade, say that the domestic commodity market will see a growth rate of 14 per cent on average this year and next. Looking at projections for 2015, total retail sales through modern distribution channels will have risen to 40 per cent, while traditional channels will retain the majority, with 60 per cent. Insiders say Viet Nam is a growing potential retail market with a population of 90 million – as the average income per capita of Vietnamese … [Read more...] about Foreign investors dominate retail

Small and home-based business owners who use the Facebook platform to sell products and have revenue of more than VND100 million (US$4,500) per year will be taxed at five per cent.The money will be paid through a tax registration, value added tax, personal income tax and other taxes depending on the goods they sell.“With revenue of over $4,500 each year, a business on Facebook paying nearly VND2 million ($90) for tax is acceptable,” Nguyen Thai Son, a taxation consultant, said in the Thanh Nien (Young People) newspaper.The tax level for those who have the same revenue in a traditional business is around four times higher, nearly VND8 million ($360), he said.In early June, the HCM City and Ha Noi Taxation Departments sent 13,400 notifications to Facebook businesses and over 1,000 businesses contacted with tax officials in HCM City.“To reduce tax losses from online business, tax authorities have woked with Facebook, Google and Apple Store to have e-commerce accounts, … [Read more...] about Facebook business must pay five per cent revenue tax

Viet Nam is set to use taxes and stricter controls on the marketing of cigarettes to discourage young people from smoking. — Photo countersy alobacsi.vn HA NOI (VNS) — Viet Nam is set to apply higher taxes, along with other stricter measures, on cigarette trading to limit consumption. The measures are part of a long-term national strategy to combat tobacco damage that has been approved by Prime Minister Nguyen Tan Dung.On average, total taxes on cigarettes in the country account for almost 45 per cent of the retail sale price. Meanwhile, the tax level suggested by the World Health Organisation and World Bank is between 60 and 80 per cent. The strategy, to be implemented until 2020, seeks to reduce the number of smokers in the 15-24 age group to 18 per cent from 26 per cent; and the overall number of male and female smokers by 39 per cent and 1.4 per cent respectively.Statistics compiled by the … [Read more...] about Nation poised to slap higher taxes on tobacco

Despite a decrease of 0.6 percent in June, the retail sales value of goods and services in the first half of the year surged 6.5 percent against the same period last year to VND1,137 trillion ($54.2 billion), according to the General Statistics Office (GSO). Customers shop at a trade fair in Hanoi However, the rise was lower than the 7-10 per cent recorded in the same period in recent years. Among the total, trade made up VND880.7 trillion ($41.93 billion), followed by the hotel-restaurant sector, which was worth VND132.8 trillion ($6.32 billion). GSO expert Vu Manh Ha attributed the decline to slow economic growth, high interest rates and stagnancy in production, which had affected spending power. Ha forecast that the sale of goods and services would improve in the second half of the year thanks to the Government's stimulus programmes. To boost production and consumption, the Government recently cut … [Read more...] about Retail sales leap 6.5% in first half